For years we have dedicated our business to working and helping with small businesses. We advise them on how to increase profits, improve returns, save money, keep their books, tax planning and preparation, and much more. Part of the reason why we do this is because we believe in the power of small businesses and their role in the health of a community at large. Let’s take a look at some of the benefits small business bring to any local economy.
The hard part is that kickstarting a company or business is not for the faint of heart. People are often surprised to find the many complications they face when it comes to dealing with their finances.
Boost Local Economy and Prosperity
With a thriving economy comes economic and emotional prosperity. A community that supports its own small businesses is likely to produce a lot more wealth and increase the stability of families. At the same time, when small businesses are supported, their taxes are paid right back to the locality and help improve schools, streets, and public services like fireman and police.
A local business is likely to hire and employ people that come from that same town or city. This has various positive effects: it helps bring stability to families, it provides jobs for young people, and improves productivity, and encourages more local spending. Because when employees work close to home, they also spend money in the area (for lunch, errands, shopping), which fuels more businesses, creates more jobs, and so on.
It All Starts Small
All great American companies were once upon a time a small business. They may have started in the garage, the parent’s basement, a small office, but with enough hard work, dedication, diligence, and creativity, they grew to extraordinary heights and sometimes changed the world.
Fuels Innovation and Competition
A small business can encourage innovation and competition in a community. Any business needs to stand out and reach customers. This forces people to be creative, reach out to locals, and thus creates a healthy marketplace. At the same time, when one person’s individual vision comes to fruition, it tends to inspire others to do the same. New ideas are often sparked through friendly competition and a business arena that is growing and thriving. Entrepreneurship is often most fruitful in a business-friendly environment.
There are many names for this, but a city with an abundance of local products and services tends to build a tighter identity and sense of togetherness. People tend to be more involved and engaged. This is because people will get to know the business owners and employees and want to support them and their vision. Word of mouth will spread and soon everyone will identify with a particular place. Take Chico’s Tacos in El Paso, for example. This is a local business that has gained notoriety, continues to be supported by locals, and has some quintessential El Paso qualities that people here are fond of.
Businesses will support local causes or sponsor community events, which in turn brings people in their doors. As with anything in a free and open marketplace, things feed into each other and actions have a snowballing effect.
How We Help
Building a new company is very hard work and business owners face a lot of complications and rules, especially when dealing with bookkeeping, accounts, and financial planning. Clifford, Ross, Raudenbush, & Cooper, specialize in helping local businesses get of the ground with their finances. If you are thinking about launching a small business or have already started your local company and are in need of advice, give us a call.